Monday, June 30, 2008

President Obama’s First Term Looks Grim, says Gross

Well duh. If I could find my tinfoil hat*, I'd say that Karl Rove and George Soros got together after realizing how brutal this next presidential term is going to be and decided on a four year interregnum before resuming Bush/Clinton/Bush/Clinton (Hil)/Bush (Jeb)/Clinton (Chelsea).Plus you've got the Mayan calendar and the asteroid.From 1440 Wall Street:

Why in the world would anyone want to take on the mess the United States of America has become? Bill Gross of Pimco is wondering himself, and his crystal ball would seem to suggest that Barack's first term in likely to be a difficult one for the wunderkind from Chicago:

By January, home prices will be down another 10 percent or so and our Japanese-style property deflation will be in full stride. Congress will have had its summer recess though and spent September and October on the campaign trail. They had to get re-elected you know, so those homeowners just had to wait.

But you’ll have your tax bill and your healthcare bill and your housing fix, and somehow it’ll all be paid for by wealthy hedge fund managers, oil companies or, pray tell, a robust economy that’s creating good jobs at home instead of exporting them abroad. Uh, I don’t think so, Mr. President. That’s where the “yes we can” morphs into “no we can’t.” Not that you won’t accomplish most of that – the robust economy and the good jobs notwithstanding. It’s just that you won’t be able to pay for it and it’s better to admit it now as opposed to later

So let’s start out by dropping all of that “budget neutral” rhetoric and admit where we’re headed. Your administration will produce this nation’s first trillion dollar deficit!Pimco...MORE, including the link to Pimco's " Investment Outlook" for July '08.